WASHINGTON — Governor of the Saudi Arabian Monetary Authority (SAMA) Ayman Bin Muhammad Al-Sayyari has emphasized the critical need for flexibility within the global economy to navigate current challenges during the 2024 International Monetary Fund (IMF) and World Bank Spring Meetings held in Washington.
He highlighted the importance of balancing these challenges with the risks threatening future economic prospects.
Al-Sayyari pointed to several concerning trends, including the widening gap in economic growth between different regions and countries, weaknesses in global food security, and rising vulnerabilities associated with sovereign debt.
To address these concerns, he underlined the necessity of unwavering commitment to international cooperation and a fair and open global trading system.
He advocated for policies that strengthen global economic resilience, prosperity, and inclusivity, with particular emphasis on supporting low-income countries.
Additionally, he called for a policy shift prioritizing financial sustainability, which would entail rebuilding reserves, safeguarding public finances, and aiding in the deceleration of inflation rates.
Regarding the International Monetary Fund's role, Al-Sayyari underscored the importance of tailoring structural reform programs to individual countries' unique circumstances.
He emphasized the need to address concerns regarding liquidity and achieve stability in particularly vulnerable economies.
Furthermore, he championed the importance of international cooperation for restructuring sovereign debt through the G20's joint framework.
Al-Sayyari also addressed the need to enhance the resilience of IMF member countries in the face of future economic shocks. He suggested a review of debt and lending policies to bolster this resilience.
Additionally, he highlighted the importance of supporting member countries in seamlessly integrating digital advancements while concurrently ensuring global financial stability and reducing global inequality.
Finally, he called for the expansion of the IMF's capacity development efforts to further empower member country institutions and policymakers. — SPA
